Delaware soybean farmers remain optimistic amid dropping prices

Why Should Delaware Care?
Farms are estimated to account for about 40% of Delaware’s land, and a large part of the state’s economy. Soybeans are one of the key crops produced by grain farmers, both for the region’s poultry industry and export markets. Profitable farms are more likely to avoid development, while the health of the state’s farming economy also feeds into banks and the surrounding economy.
A years-long drop in soybean prices has been exacerbated by China’s gutting of soybean imports this fall. Still, Delaware farmers say they are still able to scrape by.
President Donald Trump’s ongoing tariff war with China has caused U.S. soybean exports to that country to evaporate in recent months. And while that makes it harder for farmers to turn a profit, or break even on their crops, Delaware farmers have still found a market to sell their beans to poultry companies on the Delmarva Peninsula.
“Because of the chicken industry, we have that uniqueness that we never grow enough [soybeans],” said Ray Ellis, a Millsboro-based grain farmer.
Farmers in the Midwest that do not have a local demand for their soybeans, but rather ship their crops to China and other international markets, have been hit harder, Ellis added. China has historically been the largest export market for the American beans used in animal feed and to make consumer meals like tofu.
As agricultural researchers, like University of Delaware Farm Business Management Specialist Nate Bruce, point to the tariff war with China as having caused a drop in soybean prices, some local farmers are more reluctant to blame the Trump administration.
“The tariff thing I’m not worried about. It’s a self-correcting problem,” Felton-area farmer Jim Minners, who is also the president of the Kent County Farm Bureau, told Spotlight Delaware.
Minners said instead he would pin the price drop on a global soybean surplus. Ellis cited a surplus in corn production, which can also be used in animal feed, as driving the soybean price down too.
Soybean harvesting season begins in Delaware in mid-October and continues into early December.
Prices and sales
China is the world’s top purchaser of soybeans, and typically gets a large share of its beans from the United States. After the Trump administration instituted higher tariffs on Chinese products this spring, China retaliated with a 34% tax on American soybeans, among other goods.
As a result, Chinese imports of American soybeans have dropped from $12.6 billion last year to $0 this harvest season. China has instead turned to soybean markets in Brazil and Argentina, leaving more than half the U.S. soybean market scrambling.
The Chicago Board of Trade, a major nationwide trading company, sets the price for soybeans every day.
According to Bruce, the UD agricultural researcher, the soybean price has dropped from $14.20 in the 2022-23 harvest season to $12.40 in 2023-24, and $10.33 this season.
While the Chicago price is the national rate, there is also a small local variation, called a basis, which determines whether farmers in a certain region will be paid a rate over or under the Chicago price. The current soybean basis in Delaware is -0.50 cents, so local farmers would make $9.83 per bushel that they sell, Bruce said.
Minners, who has about 550 acres of farmland spread across Kent County, said this soybean price is just enough to break even on costs this year.
“It would be nice to have more, but at $10 you can cover your bills,” he said.
Another Kent County farmer, Dave Marvel, agreed. He said it wouldn’t be a year to buy new machinery, but most Delaware farmers would be able to get by with the prices.

When asked whether a rate of $10 per bushel is enough for Delaware farmers to make a profit, Bruce said that discussion was “opening up a can of worms.” The outcome for farmers, he said, depends on whether they have irrigated crops, which are more expensive, but are also more weather-resistant.
As one of the largest poultry producing regions in the country, Kent and Sussex County farmers also are uniquely positioned to be able to sell their soybean crops to local poultry companies, where they are crushed and used for poultry feed or soybean oil.
Ellis said he sells most of his beans to Mountaire Farms in Millsboro, while Marvel sells them to Schiff Farms in Harrington. Perdue Farms also has a soybean crushing facility in Bridgeville, to which some other local farmers sell.
While the Delmarva poultry industry is always demanding more corn and needs to import corn in addition to what local farmers produce, the poultry companies do not always use all of the soybeans that Delaware farmers grow, Bruce said.
Local farmers typically sell the beans not used by the poultry industry to companies at ports in Baltimore and Norfolk, Va. The accessibility of additional markets close by leaves Delaware farmers relatively more insulated from the gap in the market China has left, Bruce added.
“We’re lucky to be here because we have an industry that wants everything that we can produce,” Minners said.
Strategic decisions help with pricing
Many soybean farmers say they spend considerable time watching the market and the Chicago prices, deciding the best strategies for their crops that year.
This year, Minners was able to “forward contract” his soybeans in February, meaning he agreed to sell them for a set price before he had even planted any of the crops. The early contracting allowed him to secure his deals at $10 per bushel, higher than the current soybean price in Delaware.
Ellis too did some forward contracting before he began planting soybeans. He also said he plans to store some of his soybeans in grain bins for a couple months until he might be able to sell them at a more profitable price.
Bruce described pre-contracting and storing beans as good ways to counteract the current low soybean prices, although he said the cost of storing the soybeans can pose challenges for some farmers.
In addition to making decisions about when to sell the soybeans, farmers have to assess whether it will increase profits to lean more heavily into corn or soybean crops in a given year.

The trends in the Chicago prices of corn and soybeans typically match one another, Bruce said, so that all farmers are not incentivized to just produce one crop or another.
While corn prices have not dropped as low as soybean prices, the corn price is under $5 this year, which is below the threshold for most farmers to make a profit, Minners said.
Minners said he only planted 111 acres of soybeans this year, about a two-thirds less than his typical 300-acre crop, because he was seeing more upside potential with corn.
Marvel, who farms about 700 acres in western Kent County, decided to go against the grain and stick with soybeans because the costs for fertilizer and fuel for corn were looking higher for him.
“Sometimes salmon have to swim upstream,” Marvel said.
In assessing how many corn versus soybean crops to plant, many farmers also face the uncertainty of weather conditions.
Ellis has an irrigation system on his farm, making him less impacted by environmental factors. Marvel does not have an irrigation system, however, so some of his soybean crops were killed by a series of heavy rains during the planting season.
“Our soybean crop will definitely be below normal,” Marvel said.
The road ahead
While some farmers, like Ellis and Minners, think the soybean market and tariff situation will work itself out, Bruce sees a long road ahead for soybean farmers if the Trump administration does not come to an agreement with China.
Ellis said he does not feel too worried by the current situation because he believes that whoever was purchasing soybeans from Brazil and Argentina before China took over their markets this year will find their way to the U.S. soybean markets.
For Minners, it has been more than four years since he has had a profitable enough harvest to upgrade any of his equipment. Still, he said he thinks holding strong with tariffs on China are worth it to the American economy in the long term.
“You play hardball with them, and after a while, they’re going to come around,” he added.
If the United States and China do not work out a trade agreement in the short-term, Bruce said he predicts a painful period for American soybean farmers.
Eventually, 10 to 15 years down the line, Bruce said he believes some American companies will have built their own soybean crushing facilities, and China won’t have such a dominating impact on the global soybean market. But that won’t come for some time.
While Ellis described himself as an optimist, he said what keeps him going amid the uncertainty is a lifelong passion for farming.
“If you love what you do,” he said, “you will never work a day in your life.”
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